Chapter II TAKING OVER OF MANAGEMENT OF THE UNDERTAKING OF SOCIETIES

(1) The Government may, by notified order, appoint a body of persons (hereinafter referred to as the Board of Control) to take over the management of the undertaking of the societies. (2) The Board of Control shall consist of a Chairman and such number of other members not exceeding ten as the Government may think fit, to be appointed by the Government. (3) The Government may, either in the notified order issued under sub-section (1) or in a subsequent order, specify that one or more of the members of the Board of Control shall be full time member or full-time members thereof. (4) The term of office of, the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Board of control shall be such as may be prescribed. (5) The salaries, allowances and other remuneration and conditions of service of the members of the Board of Control shall be such as may be determined by the Government. (6) Any notified order issued under sub-section (1) shall remain in force for such period not exceeding two years as may be specified in the order: Provided that if the Government are of opinion that in order to secure the proper management of the undertaking it is expedient that any such notified order should continue in force after the expiry of the period specified in that order, they may, from time to time, by notification in the Gazette, extend such period by not more than six months at a time, but no such notified order shall in any case remain in force for more than five years.

(1) On the issue of a notified, order under section 3 appointing a Board of Control to take over the management of the undertaking- (a) all persons in charge of the management of the Co-operative Hospital complex and the Academy of Medical Sciences including the President, Vice-President and other members of the Governing Council and the Board of Directors of the Co-operative Hospital Complex and the President, Vice President and other members of the governing council and the executive committee of Academy of Medical Sciences shall be deemed to have vacated their offices as such; (b) the Board of Control alone shall be entitled, notwithstanding anything contained in any law for the time being in force, to exercise all the powers of the governing council and Board of Directors of the co-operative Hospital Complex and the governing council and executive Committee of the Academy of Medical Sciences; (c) as from the date of the notified order, the undertaking of the societies shall be in the custody of the Board of Control which shall, as soon as may be after such date, take such steps as may be necessary to take into its possession or under its control all properties, assets and effects and all actionable claims comprised in the undertaking. (2) Subject to the other provisions contained in this Act and to the control of the Government, the Board of Control shall take such steps as may be necessary for the purpose of efficiently managing the affairs of the societies medical college and the hospital and shall exercise such other powers and have such other duties as may be prescribed.

(1) Without prejudice to the provisions contained in section 4, the Board of control may with the previous approval of the Government, rescind or alter any contract or initiate proceeding before any court or authority having jurisdiction in this behalf for the purpose of cancelling or varying any contract or agreement entered in to at any time before the issue of the notified order under sub-section (1) of section 3 between the society and any person. (2) Where any proceeding is initiated before any court or authority under sub-section (1), the court or authority, as the case may be may, if satisfied after due enquiry that such contract or agreement had been entered in bad faith and is detrimental to the interests of the societies, make an order cancelling or varying (either unconditionally or subject to such conditions as it may think fit to impose) the contract or agreement and in that event the contract or agreement shall cease to have effect or stand cancelled, as the case may be or, shall have effect subject to such variations.

Notwithstanding anything contained in any law for the time being in force, no person who ceases to hold any office by reason of the provisions contained in clause (a) of sub section (1) of section 4 shall be entitled to any compensation for the loss of office: Provided that nothing contained in this section shall affect the right of any such person to recover from the societies moneys recoverable otherwise than by way of such compensation.

(1) Notwithstanding anything contained in the Kerala Co-operative Societies Act, 1969 or in the Societies Registration Act, 1860,- (a) the bye-laws of the Co-operative Hospital Complex; and (b) the Memorandum of Association and the rules and regulations of the academy of Medical Sciences , shall stand suspended for the period during which the notified order under sub-section (1) of section 3 is in force. (2) Subject to the provisions contained in sub-section (1) and to the other provisions contained in this Act and subject to such exceptions, restrictions and limitations, if any, as the Government may, by notification in the Gazette specify in this behalf, the Kerala Co-operative Societies Act, 1969 (21 of 1959) and the societies Registration Act, 1860 (Central Act XXI of 1860) shall continue to apply to the co-operative Hospital Complex or, as the case may be, the Academy of Medical Sciences in the same manner as they applied to the said societies before the issue of the notified order under sub-section (1) of section 3.

(1) Subject to the provisions of this Act every officer or other employee employed immediately before, the date of the notified order under sub-section (1) of section 3, in connection with the affairs of the undertaking shall, during the period in which such notified order is in force, hold his office by the same tenure, at the same remuneration and upon the same terms and conditions and with the same rights and privilages as to gratuity and other matters as he would have held under the societies if such notified order had not been issued. (2) The Board of Control shall be competent to take such disciplinary or other action as it thinks fit or to continue any such action already initiated against any employee referred to in sub-section (1) in respect of any act or omission or conduct or record of such employee. (3) Notwithstanding anything contained in any other law for the time being in force or in any contract or agreement the Board of Control may by order in writing terminate the service of any employee appointed irregularly by the society before the issue of the notified order under sub-section (1) of section 3 after giving one month notice in writing to the employee concerned indicating the reasons for termination of service and in lie of such notice, on payment of one month salary. (4) Any person agrrieved by an order under sub-section (3) may within one month from the receipt by him of the order, apply to the District Court to modify or set aside such order and that court after taking such evidence as it thinks necessary may pass such orders as it thinks proper in the circumstances of the case. (5) Where the Co-operative Hospital Complex or the Academy of Medical Sciences has established a provident superannuation, welfare or any other fund for the benefits of their officers and other employees, such fund shall with effect on and from the date of the notified order under sub-section (1) of section 3, stand transferred to, and vested in, the Board of Control.

If at any time it appears to the Government on the application of any member of the Co-operative Hospital Complex or otherwise that the propose of the notified order under sub-section (1) of section 3 has been fulfilled or that for any other reason it is not necessary that the order should remain in force, the Government may, by notified order, cancel such order,